Office Vacancy Rates Hold Steady Across Canada
Canada's economic engine slowed somewhat in 2012, with real Gross Domestic Product (GDP) growth of approximately 1.9% versus the 2.6% that was recorded in the previous year when the federal government's stimulus programs were more active.
• Downtown vacancy rate at 5.6% in relatively flat market
• Tenants re-examining space needs and blend-and-extend opportunities
• Kanata vacancy rate remains high
Tenant Activity Slows in Greater Ottawa Office Real Estate Market
In our previous market study six months ago, we detailed how the dynamics of the downtown Ottawa real estate market have been undergoing a significant change over the past two years. In mid-2011, overall Class "A" and Class "B" vacancy rates reached a low of 3%, but by mid-2012 the rate had nearly doubled to 5.9%. Because of the federal government's staff reductions and general downsizing initiatives, as well as the delivery of two new office developments, we speculated at the time that overall vacancy rates in downtown Ottawa would continue to rise.
NKF Devencore, Real Estate National Office Market Report - Ottawa, Spring/Summer 2013